Keep your credit card in your wallet — when it’s better to use cash

Credit cards are convenient little pieces of plastic that can easily ruin your life. You can charge almost anything to a credit card, but that doesn’t mean you should. Using credit cards for some purchases is a guaranteed way to dig a hole that you might have difficulty getting out of.

Driving Into Debt

Most car dealers will not process a credit card payment for a car purchase because they do not want to pay the transaction fee. However, you might find that 1 out of 100 doesn’t care. Unless your credit card interest rate is super duper low, this is a no-no. In most cases, getting a traditional auto loan from a bank or credit union will have a significantly lower interest rate than charging it.

Flickr

Extreme Home Makeover!

You want to redecorate. It is very tempting to go to the store, charge everything, and pay it back later. However, those purchases will add up quick. Instead, make a list and buy things gradually. Before you know it, the list will be done, your home will be complete, and you won’t have had a huge bill.

Unsplash / Annie Gray

Got Bags?

It is always better to use cash when engaging in some retail therapy. It is so easy to get carried away on a shopping spree with a credit card. You might have a limit on what you plan to spend, but your credit limit is most likely higher. With cash, you can’t go over.

Unsplash / Artem Bali

Everyone Loves A Free Drink

Using your credit card while enjoying a night out with friends is dangerous. When the drinks start to flowing, you’ll become more relaxed, and so will your grip on your credit card. Next thing you know, you’re buying all of the drinks. It is best to take cash with you when you’re going out on the town and leave the credit card at home.

Unsplash / Kelsey Chance

You Can’t Buy Class…Or Can You?

Repaying your student loans can get overwhelming. It’s tempting to charge the balance to your card when you’re struggling to make it. Instead, look into other repayment options. Maybe you qualify for an income-based repayment (IBR) program or deferment. You might even be able to have some of your loans forgiven. Look for long-term solutions. Charging it will be a temporary fix with a bigger headache later down the line.